Bitcoin Surges Past $97K Amid Market Anticipation for U.S. Inflation Data

Bitcoin rebounded sharply on Tuesday, climbing over 5% to $97,111 by 09:47 ET (14:47 GMT) after hitting a low of $89,665 the previous day. Dip buyers drove the recovery, with market participants closely watching the upcoming U.S. Consumer Price Index (CPI) report for clues on the Federal Reserve’s interest rate outlook.

Despite concerns about potential hawkish signals from the Fed, including fewer rate cuts in 2025, traders displayed strong risk appetite. Higher-than-expected inflation data could reinforce a stronger U.S. dollar, tightening liquidity and pressuring cryptocurrencies like Bitcoin.

In a significant development, Tether, the largest stablecoin issuer, announced plans to relocate its headquarters to El Salvador, signaling the country’s growing role in the global crypto landscape. President Nayib Bukele’s landmark decision to adopt Bitcoin as legal tender in 2021 further cements El Salvador’s crypto-friendly reputation.

Tom Lee of Fundstrat remains bullish on Bitcoin’s long-term potential despite short-term corrections. Lee views $70,000 as a critical support level and maintains a year-end price target of $200,000 to $250,000, highlighting Bitcoin’s resilience and growth trajectory.

Altcoins mirrored Bitcoin’s rally, with Ether rising 6% to $3,199 and XRP climbing 5.6% to $2.58. Solana, Polygon, and Cardano saw gains of 7%, 6.5%, and 10%, respectively, while Dogecoin surged over 9%.

Bitcoin’s rebound and altcoin performance showcase the market’s dynamic nature, emphasizing the importance of monitoring key economic indicators and global crypto developments.